Embraer, the number three aircraft maker in the world, said it signed a memorandum of understanding to create a joint venture “which could lead to the production of AgustaWestland helicopters in Brazil to be marketed for both commercial and military use in Brazil and Latin America.”

AgustaWestland, a unit of Italy’s Finmeccanica that already has a number of partnerships, said in a statement that it looks forward to working with Embraer.

“Brazil is an important market for AgustaWestland, and we believe having an industrial presence in this country will help us to further grow our business in one of the world’s fastest growing markets,” Chief Executive Bruno Spagnolini was quoted as saying.

The companies said preliminary studies showed strong market potential for helicopters to serve the growing offshore oil and gas sector, as well as for executive transport and military craft.